LondonMetric Property has exchanged on the sale of its distribution warehouse in Thrapston, Northamptonshire, to EQT Exeter for €120m (£102m), reflecting a NIY of 4.1%. The 785,000ft² warehouse is let to Primark for another 11 years at a rent of €5.2m (£4.4m) pa. LondonMetric acquired the property in 2013 for €71.1m (£60.5m), reflecting a NIY of 6.4%. Since the acquisition, it has delivered a total return of 123% and an ungeared IRR of 12%.
Completion of the sale will take place in February 2022, generating an additional €2.6m (£2.2m) of income. Total proceeds are 8% above the 31 March 2021 book value. LondonMetric retains its other Primark logistics warehouse which totals 1.1 million ft² and is let for a further 19 years. On completion of the sale, the portfolio’s weighting towards mega distribution will fall from 13% to 10% and its rental income exposure to Primark will fall from 8% to under 5%.
Andrew Jones, Chief Executive of LondonMetric, commented: “This is a very good asset that has performed strongly, delivering a total return of €89.3m (£76m) since acquisition. The sale price achieved reflects a very competitive bidding process and highlights the depth of demand for well let logistics assets delivering reliable, repetitive and growing income.”
